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I have been a financial market professional for 24 years – starting with my first college internship at Paine Webber in Albany, New York.  Markets have risen and fallen during that period – sometimes by extreme amounts; and bull and bear markets have come and gone.  However, the MOST UNIVERSAL “rule” I have observed is that U.S. Treasury bonds ALWAYS rise during crises.  In other words, they have been fantastic “safe haven” investments.

Granted, the U.S. Treasury market has been in a bull market since 1980; and thus, Treasuries have risen in essentially all environments….

CBOE 6-24-13

Moreover, given the Federal Reserve’s ZIRP policy since 2008…

FED Funds rate 06-13

…that will last until “at least mid-2015”…

Fed ZIRP Commitment Changes

…and QE injections “to infinity,” artificial demand has EXACERBATED this trend…

QE Graph

Irrespective, there is NO DOUBT investors have been brainwashed – via various means – into believing Treasuries ALWAYS rise during times of crisis; despite the LUNACY of parabolic debt growth…

US National Debt

..and insanity of holding ultra-low yielding bonds in an inflationary environment…

Here comes $4 gas

…particularly when the PRINTER-IN-CHIEF denies it…

DELUSIONS OF A FED CHAIRMAN

Last year, I put together a table demonstrating how – contrary to prevailing PROPAGANDA – gold has been a spectacular safe haven during financial crises; and even more impressive feat given the Cartel attacks it MORE viciously than usual amidst such events.  As for Treasury bonds, they have been equally strong when stocks fall; which is why the June 20th “post-tapering crash” was so ominous

US Treasury Long Bonds

They say “old habits die hard”; particularly so, when the fate of the ENTIRE WORLD is at stake.  Thus, the “final pillar” of Jim Sinclair’s “five pillars of the gold bull” has been the hardest to break; i.e., a “recognized top in the U.S. Treasury market.”

Given the ongoing, GLOBAL economic implosion, the forces pushing rates upward have NEVER been stronger; which is why “QE to Infinity” is the Central banks’ only alternative.  Of course, limitless MONEY PRINTING has failed EVERY single time it’s been tried; and this time will be no different…

20th Century Hyperinflations

…and thus, at some point soon, the myth that “STOCKS AND BONDS NEVER FALL TOGETHER” will abruptly DIE.